I received this voicemail the other day.
“Ellen, call me. My team wants to know why we are changing everything. Why we are moving to a new pricing plan. Why we are implementing a new way to pay. Why we are keeping score. I am afraid of an all-out rebellion. Help!”
I called him back. (Let’s call him Ken.) After he took a few breaths, I asked him, “Why are you doing all this?”
“Because I have had it! We are barely profitable. I am tired of the work-today, bill-tomorrow, get-paid-whenever business cycle. I’m embarrassed by how I am currently paying people – which is all over the place, based on how desperate I am to keep people working here. I’m frustrated because I gave big fat holiday bonuses at the end of last year and my employees were not very appreciative. Something has to change for me to keep this business going.”
Ken hasn’t successfully communicated these reasons to his employees. And if he doesn’t craft a better way of expressing them, he is going to unload on his team and damage his already fragile cultural climate.
To paraphrase Simon Sinek, author of “Start With Why,” the how doesn’t matter until the why is established. With that, let’s define some business-building basics.
The mission is your why. This is the what-gets-you-out-of-bed reason for this business to exist. Whatever drives you, that’s your mission.
Your most important goal is the vision. Can you describe, in dollars, numbers and dates, what your company looks like three to five years from now? That statement is your vision.
Additional goals are milestones on your way to the vision. Aligned with the mission and the vision, one of the goals might be, “To have a budget that provides this year’s financial goals and a supporting selling price. The budget is due by (set a date).”
Next, engage activities/projects that will help you achieve your goals. This is the how. This is a basic approach to business planning.
Now, reflect. Suppose Ken took a day or two to craft his mission and his vision, and set a few goals for this year. The path from where he is now to where he wants to be will involve change. Now, regroup.
It’s Ken’s job as the owner to develop the mission and vision. However, he would be well served at this point to let others in on the game. He may share the budget. Then, he could work with the team to come up with additional goals and a list of projects that would move them forward.
Start and finish with why. Ken’s employees may drop their resistance, if they understand what’s in it for them. While business is not a democracy, it does no good to constantly deliver decrees. Some things are negotiable. Ken can work with his employees, particularly the managers, to discover the reasons why change is necessary and beneficial. As they do, they will fix the problems they find along the way – if they feel respected and part of the process.
Ellen Rohr is an author and business consultant who helps entrepreneurs start, fix and grow their businesses. She conducts a monthly webinar, and her books include “Where Did the Money Go?” and “The Bare Bones Weekend Biz Plan.” She can be reached at ellen@barebonesbiz.com.
